Collaborating for Prosperity: FMO and Partners Supporting Ukraine's Agriculture

Collaborating for Prosperity: FMO and Partners Supporting Ukraine's Agriculture

12.10.2023

Thanks to the joint efforts to identify risks and optimal solutions to counter them, FMO, together with BP, DFCD, and Proparco (through the EFP framework), has signed a financing facility worth 31 million dollars with Trans-Oil Group. These funds are intended to supplement the capital needed for the purchase of grains from Ukraine, thus honoring our commitment to the region in a challenging geopolitical situation.

Russia's war against Ukraine has led most commercial banks to reduce their exposure to the region, resulting in a funding deficit. The collaboration between Development Financial Institutions (FMO/Proparco in this case for 2.5 years) and public funds (BP/DFCD for 5 years) plays a crucial and complementary role in the market. The new financing provides security for both existing and potential creditors of TOI and will further encourage the purchase of grains in Ukraine.

FMO's contribution is 11 million USD, with the rest coming from BP (7.5 million USD), DFCD (7.5 million USD), and Proparco (5 million USD). In this context, we express our gratitude and deep appreciation to all development partners who provide support and contribute to financial stability in the region.

We remain committed to our goals, business principles, and obligations, for the benefit of consumers, market growth, and the economy.